Question

The adjusted trial balance of Smith Sign Company follows:
(Click the icon to view the adjusted trial balance.)
Requirements
1. Assume Smith Sign Company has a January 31 year-end. Journalize Smith's closing entries at January 31.
2. How much net income or net loss did Smith Sign Company earn for the year ended January 31? How can you tell?
Requirement 1. Assume Smith Sign Company has a January 31 year-end. Joumalize Smith's closing entries at January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry
First, close revenues
Date
Accounts and Explanation
Debit
Credit
Jan.
31

Answer 1

Following are the general entry to the given question:

For Question 1:

Date             Account Titles and Explanation                   Dr              Cr

31-Jan-2024              Revenue Service                      $17,500  

                                   Summary of Income                                    $17,500

                             (Finishing the revenue account)  

31-Jan-2024     Summary of Income                        $7,100  

                                  Expense of Salary                                     $3,600

                                   Expense on rent                                             $1,800

                        Expense of Depreciation - equipment                   $300

                               Expense on Supplies                                            $400

                                 Expense on Utilities                                           $1,000

                           (To close the expenditure account)  

31-Jan-2024    Summary of Income                           $10,400  

                                Retained Earnings                                    $10,400

                 (To bring net income into line with retained profits)  

31-Jan-2024           Retained Earnings                       $1,000  

                                             Dividend                                             $1,000

               (To close net dividend to retained earnings)  

For Question 2:

A net income of $10,400 is generated. They may compute it by subtracting total expenses from the entire revenue.

Total Revenue= $17,500

Total Expenses=$7,100

$\text{Net Income= Total Revenue-Total Expenses}$

                  $\bold{= \ 17,500 - \ 7,100} \\\\ \bold{=\ 10,400}$

• Please find the complete question in the attachment file.

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